Zain Saudi Arabia to double capital to $2.39bln through rights issue

Firm gets approval for rights issue; shares to increase from 448mln to over 898mln

  
Saudi traders monitor stock information at the Saudi stock market in Riyadh, Saudi Arabia August 25, 2020.

Saudi traders monitor stock information at the Saudi stock market in Riyadh, Saudi Arabia August 25, 2020.

REUTERS/Ahmed Yosri

Mobile Telecommunication Company, Saudi Arabia (Zain KSA), has secured an approval to double its capital to more than 8.9 billion Saudi riyals ($2.39 billion) through a rights issue.

At the Extraordinary General Assembly on Wednesday, the board approved an increase of 4.5 billion riyals ($1.2 billion), raising the company’s capital by 100.3 percent, Zain said in a filing on Thursday to the Saudi Stock Exchange (Tadawul).

With the increase, the company’s shares will go up from more than 448.729 million to 898.729 million. The offering price is set at 10 Saudi riyals a share.

The company said the increase was proposed to capitalise “part of the amounts due to Zain Kuwait”, which owns 37 percent of Zain KSA, and to pay “part of the Murabaha facility”.

Last month, the telecom operator secured an agreement to extend to five years the maturity of its SAR 3.85 billion syndicated Murabaha financing facility with a consortium of eight banks.

(Reporting by Cleofe Maceda; editing by Seban Scaria)

Cleofe.maceda@refinitiv.com

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© ZAWYA 2020

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